01 Oct Report: San Diego real estate prices at record levels
San Diego real estate prices broke national records in July. Home prices in San Diego County increased 0.8 percent and are up 5.4 percent over the year – the nation’s largest annual increase, according to the most recent figures from S&P/Case-Shiller Home Price Indices.
The data shows that, despite seasonal swings in San Diego real estate, appreciation and price growth is still a strong part of the San Diego areal estate market. Since August 2014, the annual home appreciation rate has hovered between 5 percent and 6 percent – above the 2 percent inflation rate.
While healthy, those figures are still below the 10 and 22 percent appreciation rates in 2013 and the first half of 2014, but are proof positive the real estate market in San Diego is growing at a steady pace.It’s also a guard against foreclosures, which dominated the San Diego real estate scene just a few short years ago. Because of appreciation, homeowners who may be in trouble are able to sell their homes at a profit instead of at a loss.
San Diego compared to national figures
When compared to national figures, San Diego real estate fared well. Nationally, the home price index increased 0.7 percent in July and 4.7 percent over the year, reflecting strong demand on the west coast. Los Angeles, San Francisco and San Diego, respectively, had the largest cumulative price increases.
The economy has boosted the U.S. real estate market, despite an expected increase in interest rates later this year. The Case-Shiller index tracks repeat sales of identical single-family housing. Separately, another real estate data service, Corelogic, recently reported median prices of homes for sale in San Diego peaked at $530,000 in July but fell to $515,00 in August.